What seemed like a simple biopharmaceutical company has just taken a radical turn that has left Wall Street speechless.
Sonnet BioTherapeutics (SONN), until now focused on medical therapies, has announced an $888 million deal to transform itself into a cryptocurrency investment vehicle, and the market has responded with euphoria.
SONN shares soared 265% in the premarket, rising from $5.17 on Friday to $18.68 on Monday.
However, the excitement faded, and at the time of writing, the stock was up approximately 100% for the day, trading at $10.30.
Furthermore, in the last 30 days, the cumulative gain has reached almost 800%, and 600% so far this year.
The reason for this buying frenzy is the creation of Hyperliquid Strategies Inc. (HSI), a new entity born from the alliance with Rorschach I LLC, backed by heavyweights such as Atlas Merchant Capital and Paradigm.
The deal is no small feat: HSI will begin life with 12.6 million HYPE tokens (valued at $583 million) and at least $305 million in cash. But the most striking aspect is the dream team behind it, with figures such as Bob Diamond (founder of Atlas) as president and Eric Rosengren, former director of the Boston Fed, on the board. Their plan is clear: to become one of the largest institutional holders of crypto assets, starting with HYPE but not ruling out other acquisitions.
